Amazon signs pact with Gujarat to boost state MSMEs' e-commerce exports

Amazon India has signed a Memorandum of Understanding (MoU) with the Industries and Mines Department, Government of Gujarat, to help drive e-commerce exports from the state. As part of the MoU, Amazon will train and onboard MSMEs (micro, small and medium enterprises) from the state on Amazon Global Selling, enabling them to sell their unique Made in India products to millions of Amazon customers across over 200 countries and territories.

Amazon Global Selling lowers the entry barrier for motivated Indian MSMEs to expand their business and launch their brands globally, from anywhere in India. With this program, homegrown businesses get instant access to global markets from Day 1, benefiting from Amazon’s distribution capabilities and global footprint to scale rapidly and build sustainable exports businesses.

Abhijit Kamra, director, global trade, Amazon India said the Amazon Global Selling program has already enabled more than 70,000 Indian exporters to cross $3 billion in cumulative exports, showcasing millions of Made in India products to customers across the world. 

“The program is witnessing tremendous momentum with increasing interest from exporters across India,” said Kamra. “We remain committed towards making exports easy for Indian businesses and empower them to tap into their true potential.”

Amazon will conduct training, webinars and on-boarding workshops for exporters from key MSME clusters like Ahmedabad, Vadodara, Surat, Bharuch and Rajkot. The workshops will focus on sharing expertise and providing training to MSMEs about B2C e-commerce exports and selling to over 300 million people worldwide through Amazon's 17 foreign marketplaces. These courses are designed to provide MSMEs with the knowledge and tools they need to launch their brands and expand their businesses internationally using Amazon Global Selling.

Vijay Rupani, Chief Minister of Gujarat said Gujarat has a vibrant gems and jewellery, apparels and textiles and handicraft sector which is held together by lakhs of MSMEs. He said one of the key priorities of the government has been to boost exports from Gujarat.

“Through this partnership with Amazon, we aim to empower lakhs of MSMEs in Gujarat to embrace e-commerce exports,” said Rupani. “It will help them leverage Amazon’s global presence to showcase their products to customers across the world.  MSMEs taking their local products to global customers will play a critical role in supporting the local economy and display the strength of the state’s manufacturing and innovation prowess.”

In January 2020, Amazon made three important commitments to India – digitally enabling 10 million MSMEs in India, enabling exports worth $10 billion and creating 1 million new jobs – by 2025.

However, the Confederation of All India Traders (CAIT), which represents 70 million traders has strongly criticized Gujarat Chief Minister Vijay Rupani for the act of Gujarat Government entering an MOU with Amazon to take help of Amazon to boost its exports through Amazon Global selling . CAIT said besides the traders of Gujarat, the traders across the country felt cheated at the hands of Gujarat Government for shaking hands with a known law offender company. CAIT said it will oppose such MOU and will take decision at a meeting of National Trade Leaders to be held on 9th September 2021. The conference will be attended by trade leaders from all States, for finalising a strategy for a national campaign ‘Halla Bol on E-Commerce.’

CAIT National President B.C.Bhartia and Secretary General Praveen Khandelwal while strongly criticising the Gujarat Government alleged that the Union Government's statutory bodies Competition Commission of India and Enforcement Directorate are conducting investigation against Amazon for indulging into anti-competitive practices and violation of e-commerce rules as also violation of FEMA (Foreign Exchange Management Act). But the Gujarat Government is shaking hands with Amazon for boosting sales of its products.

Bhartia and  Khandelwal said that this act of Gujarat Government is leading to make products of Gujarat captivate at the hands of Amazon. “Does Gujarat Chief Minister know the on-ground operations of Amazon or before taking such a decision, has he gone through various charges levelled against Amazon. Has he consulted the Union Government before taking such a decision,” alleged Bhartia and Khandelwal.

Bhartia and Khandelwal said that they will raise this issue with BJP President  J.P.Nadda and Union Commerce Minister Piyush Goyal and apprise them with the political consequences of this act of Gujarat Government.